The rules of money and finance changed last year.
If we look at a chart of the S&P 500 going back to the early 80s, the picture is clear as day—stocks only went up over time.
Sure there were plenty of “dips”. But from 1982 on, we could buy a simple mutual fund or index fund and two years later we would have made money. Fifteen years later we would have made a lot of money.
Meanwhile, if we were to overlay a chart of the 10-year Treasury rate – the opposite is true. Interest rates only went down over time.
That dynamic – stocks go up, rates go down – was largely thanks to the Federal Reserve (the Fed). It had a hand in both via “loose” monetary policy.
But the game’s over.
The Fed pivoted in 2022. And Fed Chair Jerome Powell made it abundantly clear that he will no longer push interest rates lower to support the stock market.
And that means The Age of Paper Wealth is over.
We’re in uncharted waters here. Nobody under the age of 60 has been an adult in a world in which the Fed didn’t push stocks up and rates down.
So to me, the big takeaway is that we have to rethink financial planning 101. And I’m talking about the entire “nest egg” approach to retirement.
By that I mean the idea that we need to pour our savings into financial assets trying to get to this mythical retirement number.
What’s Your Number? I remember old commercials promoting this slogan.
The nest egg model puts our assets and our income on a see-saw.
When we’re working, we focus on building up assets. Then when we retire we sell off those assets to create income.
It’s always a choice between assets and income.
When our assets are going up, we don’t have the income. Then when we want the income, our assets have to come down.
Why put ourselves in this position? Why not get assets and income on the same side of the equation?
Well, that’s exactly what we do inside The Phoenician League.
Are you skeptical of traditional retirement plans? Seeking a more dynamic way to secure your financial future? Welcome to The Phoenician League – a unique investment membership designed for those who dare to think differently.
We throw the entire idea of retirement out the window. Because instead of fixating upon a certain age, we focus on building both assets and passive income streams.
Then, once our income streams can cover our expenses… we’re good. We can stop working any time we want. But our income will keep coming in, month after month.
Why The Phoenician League?
- Expert Guidance: We don’t just provide information. We walk you through each step of building your passive income streams.
- Community Support: Join a network of like-minded individuals, all focused on financial growth and independence.
- Real Success Stories: Our members speak for us. Brian M. discovered a “fantastic way to increase wealth,” while Nate J. started earning monthly passive income in just one month. Mike W. built more monthly income than he ever thought possible.
Curious to learn more?
Click here to explore how The Phoenician League can revolutionize your approach to money, investing, and passive income.
Don’t just plan for the future. Actively shape it with us…
-Joe Withrow